*Table includes companies with minimum market
capitalizations of $200 million and three month trading
volumes of at least 100,000 shares. All percentage returns
are listed as of 11:00AM Eastern Standard Time . Click on
ticker symbols for up-to-the-minute price quotes and
percentage gain data.

VIVUS: No News is Good News

Only a day after shares of
VIVUS (Nasdaq: VVUS)slumped on fears
that its anti-obesity drugs would prove too risky for approval by
the U.S. Food and Drug Administration (
FDA
) the biotech company got a possible dose of good news. The FDA
acknowledged that its combination drug is indeed effective. And
that's pushing shares up nearly +13% this morning. The pair of
drugs simultaneously suppress appetite while boosting impulse
control.

But -- and it's a big one -- the drug combo raised five separate
safety concerns, which will surely be fodder for an outside panel
to discuss when it meets on Thursday. Those concerns were
anticipated, which is why investors are not reacting with alarm.

Action to Take -->
VIVUS may indeed win FDA approval, although it would likely come
with restrictions. Meanwhile, drugs being tested by
Arena Phramaceuticals (Nasdaq: ARNA)
and
Orexigen (Nasdaq: OREX)
may not have such restrictions, so doctors may be hesitant to
prescribe VIVUS' drug. Both of those stocks are up more than +5%
this morning as well. VIVUS' drug is too risky to chase, despite
today's seemingly positive development.

------------------------------------

Ivanhoe puts up a "For Sale" Sign

For a number of years, mining firms have coveted the massive and
potentially lucrative Mongolian real estate holdings of
Ivanhoe Mines (
IVN
)
. The company seemingly secured the rights to the mineral rich
fields out of nowhere, before most firms even knew that Mongolia
had such rich deposits of gold, copper and uranium. Since then, the
company has repeatedly rebuffed overtures from peers that have
tried to buy the company. The United Kingdom's
Rio Tinto (
RTP
)
eventually prevailed, and now owns roughly 30% of Ivanhoe, with
rights to take that ownership up to 45%.

Fearing that Rio Tinto would go past that 45% threshold and
eventually boost its stake above 50% and take control, Ivanhoe
installed a "poison pill" restriction that would have led to
massive dilution if any investors tried such a move. "No fair,"
shouted Rio Tinto. Well, Ivanhoe has agreed to temporarily suspend
the poison pill plan, paving the way for Rio Tinto to boost its
stake. Ivanhoe's investors are breathing a sigh of relief, pushing
shares up nearly +12%, as any further investment would bring in
badly needed capital.

Action to Take -->
Shares are also rising on the perception that Ivanhoe will
eventually be acquired at a nice premium to the current price.
Adding further intrigue, China's Chinalco, which is Rio Tinto's
largest shareholder, also covets that Mongolian mineral belt. Don't
be surprised if a bidding war ensues while Rio Tinto's stake
remains below 50%. When all is said and done, Ivanhoe could receive
a bid north of $20 from either party. That's more than +20% above
the current price.

------------------------------------

Brooks Automation confirms the Semiconductor Bull
Thesis

In recent quarters, the semiconductor industry has been beset by a
paradox. Quarterly results -- and forward guidance -- have been
strong, yet shares have been in freefall. The majority of chip and
chip-equipment stocks now trade for less than ten times projected
profits. Clearly, many investors assume the industry's recent
upturn won't last.

But as
Brooks Automation (Nasdaq: BRKS)
told investors Monday evening, business remains quite robust.
Brooks, which provides automation tools for the semiconductor
fabrication process, notes that bookings are strong, which should
enable the company to exceed sales and profit forecasts for the
quarters ended in June and September. And that's pushing shares up
nearly +12% in Tuesday trading.

Action to Take -->
Brooks won't exceed forecasts by a wide margin , but the fact that
guidance isn't negative is reason enough for investors to bid
shares up. If this industry can sustain growth into the next year
or two, then shares are poised for a powerful rally. It's hard to
single out Brooks Automation as especially appealing, as it is
simply as cheap as many of its peers. For my money, industry titan
Applied Materials (Nasdaq: AMAT)
holds the greatest appeal, as it provides the broadest exposure to
the group, while trading at around 11 times next year's
profits.

-- David Sterman

David Sterman has worked as an investment analyst for nearly two
decades. He started his career in equity research at Smith Barney,
culminating in a position as Senior Analyst covering European
banks. David has also served as Director of Research at Individual
Investor and has made numerous media appearances over the years,
primarily on CNBC and Bloomberg TV. David has a master's degree in
management from Georgia Tech. Read More...

Disclosure: Neither David Sterman nor StreetAuthority, LLC hold
positions in any securities mentioned in this article.

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